Subway’s sale process is proceeding as planned, sources at the company said this week, with 10 or more potential suitors doing due diligence. Sources suggested a sale decision could come in May.
The privately held Milford, Conn.-based sandwich franchise on Feb. 14 confirmed earlier reports that it was putting itself on the block. It hired J.P. Morgan Chase as an adviser in the sale process, and officials said they would not be making any further public comment until the process was completed.
J.P. Morgan declined comment on Thursday.
However, reports early this week that the company may lower the sales price led several company contacts to question the accuracy, saying the original sales target of $10 billion remained.
Sources said the first pool of bids were lodged in March, “and several interested parties have already been thrown out by the company’s advisers for offering too little,” the Wall Street Journal said in a report Thursday.
“More than 10 possible suitors, including some big names in private equity, are conducting due diligence that should draw to a close by the end of this month,” the Wall Street Journal said. “Final bids will likely be due around then and a buyer could emerge by the end of May, the people said.”
Private-equity firms mentioned in earlier reports included Bain Capital, Clayton, Dubilier & Rice, Goldman Sachs Asset Management and TPG Capital. Further reports indicated interest from Atlanta-based Roark Capital Group, owner of Inspire Brands and the parent company to Arby’s, Buffalo Wild Wings, Dunkin’, Jimmy John’s and Sonic. Other interest had been reported from the EG Group.
Sources declined to comment on specific bidders.
Subway has about 37,000 locations in more than 100 countries.
Contact Ron Ruggless at [email protected]
Follow him on Twitter: @RonRuggless
